Oh yeah, your people CAN die, and its hard to keep them all alive without a imported character (its possible, I did when I loaded my game back before the mission after i beat it). So there are definitely advantages to playing ME1 first.

Who can die?
I finished it the other day but never come across a situation where it was even possible

My thoughts on the story, I found it a little weak. It was mostly comprised of getting your team together and doing side quests. Now I don't think the side quests were neccessary. The entire main plot involved very few missions.

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